−Removed: Founded in 1904, ESAB Corporation, is a focused premier industrial compounder.
−Removed: On April 4, 2022, ESAB completed its Separation from Colfax Corporation and became an independent, publicly-traded company, listed on the New York Stock Exchange (“NYSE”).
−Removed: We provide our partners with advanced equipment, consumables, gas control equipment, robotics and digital solutions.
−Removed: Our rich history of innovative products and workflow solutions and our business system, ESAB Business Excellence (“EBX”), enables our purpose of Shaping the world we imagine TM .
−Removed: Our products are utilized to solve challenges in a wide range of industries, including cutting, joining and automated welding.
−Removed: Products are marketed under several brand names, most notably ESAB, which we believe is well known in the international welding industry.
−Removed: ESAB’s comprehensive range of welding consumables includes electrodes, cored and solid wires and fluxes using a wide range of specialty and other materials and cutting consumables includes electrodes, nozzles, shields and tips.
−Removed: ESAB’s equipment ranges from portable welding machines to large customized automated cutting and welding systems.
−Removed: ESAB also offers a range of software and digital solutions to help its customers increase their productivity, remotely monitor their welding operations and digitize their documentation.
−Removed: Products are sold into a wide range of global end markets, including general industry, infrastructure, renewable energy, medical and life sciences, transportation, construction and energy.
+Added: Founded in 1904, ESAB Corporation (“ESAB,” “we” or the “Company”), is a focused premier industrial compounder.
+Added: ESAB provides its partners with fabrication technology advanced equipment, consumables, gas control equipment, robotics and digital solutions.
+Added: The Company’s rich history of innovative products and workflow solutions and our business management system, ESAB Business Excellence (“EBX”), enables the Company’s purpose of Shaping the world we imagine TM .
+Added: We formulate, develop, manufacture and supply consumable products and equipment, including cutting, joining and welding robotics, as well as gas control equipment.
+Added: Our products are marketed under several brand names, most notably ESAB, providing a wide range of products with innovative technologies to solve challenges in virtually any industry.
Our sales channels include both independent distributors and direct salespeople that, depending on geography and end market, sell our products to our end users.
ESAB is based in North Bethesda, Maryland and employs approximately 9,300 associates and serves customers in approximately 150 countries.
−Removed: We believe our Company, which competes in an estimated $30 billion m arket, is one of the prominent industry players with a substantial position in every major market in the world, combining global scale with regional agility to maximize growth and profits.
−Removed: We define our addressable market as established fabrication technology equipment products and new products in automation, software and services, and estimate its size based on public data from peer companies, customer surveys and market analysis conducted by our sales function.
−Removed: Approximately 50% of our 2023 revenues were derived from developing markets, which we define as South America, Eastern Europe, India, Asia, Australia and the Middle East, and which are expected to grow at greater than twice the rate of more mature markets in North America and Europe, based on publicly available economic data from sources such as IHS Markit and the International Monetary Fund.
+Added: We believe our Company, which competes in a m arket expected to be approximately $40 billion by the end of 2028, is one of the prominent industry players with a substantial position in every major market in the world, combining global scale with regional agility to maximize growth and profits.
+Added: We define our addressable market as established fabrication technology and gas control equipment products and new products in automation, software and services, and estimate its size based on public data from peer companies, customer surveys and market analysis conducted by our sales function.
+Added: Approximately 48% of our 2024 revenues were derived from high growth markets, which we define as South America, Eastern Europe, India, Asia Pacific and the Middle East, and which are expected to grow at greater than twice the rate of more developed markets in North America and Europe, based on publicly available economic data from sources such as IHS Markit and the International Monetary Fund.
Our gas control business is also well-positioned in attractive markets such as medical and specialty gas control.
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Acquisitions follow our disciplined process to ensure strategic alignment, rapid integration and attractive long-term financial returns.
−Removed: During the year ended December 31, 2023, we completed one acquisition and we expect to complete more acquisitions in the following years.
+Added: During the year ended December 31, 2024, we completed three acquisitions and we expect to complete more acquisitions in the future.
See Part II, Item 8, Note 5, “Acquisitions” of this Form 10-K for further information.
The Company has been built through a series of acquisitions, as well as organic growth.
−Removed: We seek to build an enduring premier global enterprise by applying EBX to continuously improve our Company and pursue growth in revenues and improvements in profit and cash flow.
+Added: We seek to build an enduring premier global enterprise by applying EBX to continuously improve our Company, pursue growth in revenues and improvements in profit and cash flow.
EBX is integral to our operations.
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We believe that our management team’s access to, and experience in, the application of the EBX methodology is one of our primary competitive strengths.
−Removed: We have used EBX to accelerate our growth and improve business performance.
Industry Overview
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We encounter a wide variety of competitors that differ by product line, including well-established regional competitors, competitors with greater specialization in particular markets, as well as larger competitors.
−Removed: The markets that we compete in are also served by Lincoln Electric and the welding business within Illinois Tool
+Added: The markets that we compete in are also served by Lincoln Electric and the welding business within Illinois Tool Works, Inc.
Our customer base is broadly diversified across many sectors of the economy and we believe customers place a premium on quality, reliability, availability, design and application engineering support.
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We believe this geographic diversity allows us to draw on the skills of a global workforce, provides stability to our operations, allows us to drive economies of scale, provides revenue streams that may offset economic trends in individual economies and offers an opportunity to access new markets for products.
−Removed: In addition, we believe that our exposure to developing economies will provide additional opportunities for growth in the future.
−Removed: Our principal markets outside the United States are Europe, Asia, South America and the Middle East.
+Added: In addition, we believe that our exposure to high growth economies will provide additional opportunities for growth in the future.
+Added: Our principal markets outside the United States are Europe, Asia Pacific, South America and the Middle East.
Our international operations subject us to certain risks.
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Our principal raw materials and components for our business are steel, iron, copper and aluminum.
−Removed: We believe that our sources of raw materials are adequate for our needs for the foreseeable future and the loss of any one supplier would
−Removed: not have a material adverse effect on our business or results of operations.
+Added: We believe that our sources of raw materials are adequate for our needs for the foreseeable future and the loss of any one supplier would not have a material adverse effect on our business or results of operations.
Our European operations typically experience a slowdown during the July and August vacation seasons.
−Removed: However, the business impact caused by general economic conditions, geopolitical conflicts and other disruptions, may distort the effects of historical seasonality patterns and impact future seasonal variations.
+Added: business impact caused by general economic conditions, geopolitical conflicts and other disruptions, may distort the effects of historical seasonality patterns and impact future seasonal variations.
Working Capital
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Our operations and properties are subject to laws and regulations relating to environmental protection, including those governing air emissions, water discharges and waste management and workplace health and safety.
+Added: In addition, we are or may become subject to new climate and sustainability laws and regulations, such as the European Union’s Corporate Sustainability Reporting Directive and the State of California’s new climate change disclosure rules.
Our Quality, Environmental and Occupational Health & Safety (“QEHS”) Management Systems apply to all of ESAB’s operations, activities, people and units globally.
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We are required to comply with various United States export / import control and economic sanctions laws, including:
−Removed: • the International Traffic in Arms Regulations administered by the United States Department of State, Directorate of Defense Trade Controls, which, among other things, imposes license requirements on the export from the United States of defense articles and defense services (which are items specifically designed or adapted for a military application and/or listed on the United States Munitions List);
−Removed: • the Export Administration Regulations administered by the United States Department of Commerce, Bureau of Industry and Security, which, among other things, impose licensing requirements on the export or re-export of certain dual-use goods, technology and software (which are items that potentially have both commercial and military applications);
+Added: • the International Traffic in Arms Regulations administered by the United States Department of State, Directorate of Defense Trade Controls, which, among other things, imposes license requirements on the export from the United States of defense articles and defense services (items specifically designed or adapted for a military application and/or listed on the United States Munitions List);
+Added: • the Export Administration Regulations administered by the United States Department of Commerce, Bureau of Industry and Security, which, among other things, impose licensing requirements on the export or re-export of certain dual-use goods, technology and software (items that potentially have both commercial and military applications);
• the regulations administered by the United States Department of Treasury, Office of Foreign Assets Control, which implement economic sanctions imposed against designated countries, governments and persons based on United States foreign policy and national security considerations;
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For a discussion of risks related to export/import control and economic sanctions laws, refer to Item 1A.
−Removed: “Risk Factors—Risks Related to Litigation and Regulatory Compliance— We have done and may continue to do business in countries subject to United States sanctions and embargoes.
−Removed: Failure to comply with various sanction and embargo laws may result in enforcement or other regulatory actions ” and “Risk Factors—Risks Related to Litigation and Regulatory Compliance— If we fail to comply with export control regulations, we could be subject to substantial fines or other sanctions, which could have a material adverse effect on our business, financial condition and results of operations .”
+Added: “Risk Factors—Risks Related to Litigation and Regulatory Compliance— We have done and may continue to do business in countries subject to United States sanctions.
+Added: Failure to comply with various sanction laws may result in enforcement or other regulatory actions ” and “Risk Factors—Risks Related to Litigation and Regulatory Compliance— If we fail to comply with export control regulations, we could be subject to substantial fines or other sanctions, which could have a material adverse effect on our business, financial condition and results of operations .”
Human Capital Management
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Specific compensation and benefits vary worldwide and are based on regional practices.
−Removed: Diversity and Inclusion
−Removed: ESAB is dedicated to creating an inclusive, welcoming culture in which every voice is valued.
−Removed: To advance this commitment, we have developed our Diversity, Equity and Inclusion Strategy.
−Removed: Our strategy is about embracing diversity and inclusion in our everyday actions while empowering and elevating others through equal opportunities, leading inclusively and ensuring every voice is valued.
+Added: ESAB is dedicated to creating an inclusive, welcoming culture.
+Added: Our strategy is about embracing inclusion in our everyday actions while empowering and elevating each of our associates through equal opportunities, leading inclusively and ensuring every voice is valued.
Labor Relations
−Removed: Approximate ly 17% of our United States associates are covered by collective bargaining agreements with United States trade unions.
−Removed: In addition, approximately 42% of our non-United States associates are represented by foreign trade unions and work councils in Europe, Asia, Central and South America, Canada, Africa and Australia, which could subject us to arrangements very similar to collective bargaining agreements.
+Added: Approximately 18% of our United States associates are covered by collective bargaining agreements with United States trade unions.
+Added: In addition, approximately 39% of our non-United States associates are represented by foreign trade unions and work councils in Europe, Asia, Central and South America, Canada and Australia, which could subject us to arrangements very
+Added: similar to collective bargaining agreements.
We have not experienced any work stoppages or strikes that have had a material adverse impact on operations.
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We were organized as a Delaware corporation in 2021.
−Removed: Our principal executive offices are located at 909 Rose Avenue, 8th Floor, North Bethesda, MD 20852, and our main telephone number at that address is (301) 323-9099.
+Added: On April 4, 2022, ESAB spun-off from Colfax Corporation (“Colfax,” “Enovis” or the “Former Parent”) to become an independent, publicly-traded company, listed on the New York Stock Exchange (the “Separation”).
+Added: The Separation was effectuated through a pro-rata distribution of 90% of the then-outstanding shares of ESAB to the holders of common stock of Colfax.
+Added: In November 2022, the Former Parent sold its remaining stake in ESAB.
+Added: Our principal executive offices are located at 909 Rose Avenue, 8th Floor, North Bethesda, Maryland 20852, and our main telephone number at that address is (301) 323-9099.
Our corporate website address is www.esabcorporation.com.
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You may also request a copy of these filings, at no cost, by writing or telephoning us at:
−Removed: Investor Relations, ESAB Corporation, 909 Rose Avenue, 8th Floor, North Bethesda, MD 20852, telephone (301) 323-9099.
+Added: Investor Relations, ESAB Corporation, 909 Rose Avenue, 8th Floor, North Bethesda, Maryland 20852, telephone (301) 323-9099.
Information contained on our website is not incorporated by reference in this report.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.